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Chrysler (Uk) Ltd

Volume 973: debated on Wednesday 14 November 1979

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asked the Secretary of State for Industry if there have been any changes in the liability of Her Majesty's Government to assist Chrysler (UK) Ltd. (Talbot).

Yes. I have placed in the Library of the House a supplemental deed to the agreement of 16 December 1978 between the Government, PSA Peugeot-Citroen, Chrysler France and Chrysler United Kingdom which releases Her Majesty's Government from any guarantee to a consortia of English and Scottish clearing banks for medium-term lending of £35 million. Allowing for the associated liability for interest, this reduces Her Majesty's Government's total liability under that agreement to £119 million. Of this total £64 million is in respect of loss subventions, of which £59 million has been paid and up to £5 million may be paid in respect of losses incurred in 1979: £55 million is in the form of loans, of which £9 million remains to be advanced.